Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2025 For the transition period from _______________ to _______________ Commission file number 001-39189 UWM HOLDINGS CORPORATION (Exact name of registrant as specified in its charter) | Delaware | | | 84-2124167 | | --- | --- | --- | --- | | (State or other jurisdiction ...

UWM Holdings Corporation (NYSE:UWMC) Q1 2025 Earnings Conference Call May 6, 2025 10:00 AM ET Company Participants Blake Kolo - Chief Business Officer & Head, IR Mat Ishbia - Chairman & CEO Rami Hasani - CFO Conference Call Participants Eric Hagen - BTIG Bose George - KBW Jeff Adelson - Morgan Stanley Mikhail Goberman - Citizens Doug Harter - UBS Operator Good morning, my name is Abby and I'll be your conference operator today. At this time, I would like to welcome everyone to the UWM Holdings Corporation F ...

UWM (UWMC) Q1 2025 Earnings Call May 06, 2025 10:00 AM ET Company Participants Blake Kolo - Chief Business Officer and Head of IRMathew Ishbia - Chairman, President & CEORami Hasani - CFOEric Hagen - Managing DirectorBose George - Managing DirectorJeffrey Adelson - Executive DirectorMikhail Goberman - VP - Equity Research Conference Call Participants Douglas Harter - Equity Research Analyst Operator Good morning. My name is Abby, and I'll be your conference operator today. At this time, I would like to welc ...

UWM (UWMC) Q1 2025 Earnings Call May 06, 2025 10:00 AM ET Speaker0 Good morning. My name is Abby, and I'll be your conference operator today. At this time, I would like to welcome everyone to the UWM Holdings Corporation First Quarter twenty twenty five Earnings Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question and answer session. Thank you. And Mr. Blake Kolo, you may begin your conference. Speaker1 Good morning. This ...

Financial Performance - Total revenue for Q1 2025 was $613.4 million, down from $720.6 million in Q4 2024 and up from $585.5 million in Q1 2024[4] - The company reported a net loss of $247.0 million in Q1 2025, compared to a net income of $40.6 million in Q4 2024 and $180.5 million in Q1 2024[4] - Adjusted EBITDA for Q1 2025 was $57.8 million, down from $118.2 million in Q4 2024 and $101.5 million in Q1 2024[4] - Adjusted net income for Q1 2025 was $(260,816) thousand, compared to $42,332 thousand in Q4 2024 and $184,264 thousand in Q1 2024[22] - Loan production income decreased to $304,751,000 in Q1 2025 from $407,229,000 in Q4 2024, a decline of 25.2%[30] - Total expenses for Q1 2025 were $485,601,000, down from $517,875,000 in Q4 2024, a reduction of 6.2%[30] - The change in fair value of mortgage servicing rights resulted in a loss of $388,585,000 in Q1 2025, compared to a gain of $309,149,000 in Q4 2024[30] - Basic earnings per share for Class A common stock was $(0.08) in Q1 2025, compared to $0.06 in Q4 2024[34] Loan Origination and Production - First quarter 2025 loan origination volume was $32.4 billion, a 17% increase year over year, marking the highest Q1 originations since 2022[2] - The company anticipates second quarter production to be in the range of $38 to $45 billion, with a gain margin of 90 to 115 basis points[13] Equity and Assets - Total equity decreased to $1.6 billion at March 31, 2025, from $2.1 billion at December 31, 2024[4] - UWM's total equity decreased to $1,635,349 thousand as of March 31, 2025, from $2,053,848 thousand at the end of 2024[28] - Total assets decreased to $14,048,433 thousand as of March 31, 2025, from $15,671,116 thousand at the end of 2024[28] - Total liabilities decreased to $12,413,084,000 as of March 31, 2025, from $13,617,268,000 as of December 31, 2024[32] Debt and Financial Ratios - Total non-funding debt as of March 31, 2025, was $3,149,687 thousand, a decrease from $3,401,066 thousand at the end of Q4 2024[22] - The company reported a non-funding debt to equity ratio of 1.93 in Q1 2025, up from 1.66 in Q4 2024[22] Cash and Dividends - A cash dividend of $0.10 per share was declared for the eighteenth consecutive quarter, payable on July 10, 2025[14] - Cash and cash equivalents decreased to $485,024,000 as of March 31, 2025, from $507,339,000 as of December 31, 2024[32] Market Position and Strategy - UWM remains the largest wholesale mortgage lender for ten consecutive years and the largest purchase lender in the nation[25] - The company is focused on technological innovation and enhancing client experience to maintain market leadership[25] - The company anticipates growth opportunities in 2025, particularly in the broker channel and operational profitability[23][24] Product and Service Expansion - The partnership with Sphere LOS provides brokers with a free all-in-one workflow platform for two years to enhance software adoption[9] - TRAC Lite, a cost-effective title option, has been expanded to 14 states, offered at a flat fee between $375 and $475[10] Mortgage Servicing Rights - The unpaid principal balance of mortgage servicing rights (MSRs) was $214.6 billion with a weighted average coupon (WAC) of 5.44% at March 31, 2025[4] - Mortgage loans at fair value decreased to $8,402,211 thousand in Q1 2025 from $9,516,537 thousand in Q4 2024[28]

I am a journalist based in Detroit, having spent almost my entire career writing about business and economic subjects for The Wall Street Journal, New York Times, Detroit Free Press and Bloomberg. I'm the author of two books and am an acknowledged expert on the world automotive industry. Mat Ishbia, CEO of United Wholesale Holdings Corp. (NYSE: UWMC ), the parent of United Wholesale Mortgage, in the company's Feb. 26 earnings call , asserted how his company "continued to invest in cutting- edge technology, ...

Group 1 - The industry is expected to perform better over the next four years compared to the last two to three years, indicating a positive outlook [1] - There is a strong belief among investors that the current market conditions will improve, leading to increased confidence in stock investments [1] Group 2 - The strategy of deleveraging emergency funds by investing in stocks, real estate, and businesses is highlighted as a means to secure income [1] - A focus on high conviction in a portfolio of dividend-paying stocks and ETFs is emphasized, with selection criteria based on risk-adjusted performance, diversification, and sustainability [1]

Financial Data and Key Metrics Changes - UWM Holdings Corporation reported a 29% year-over-year growth in overall production, reaching approximately $139 billion [7][13] - The gain on sale increased by 20%, with a gain margin of 110 basis points, up from 92 basis points the previous year [13][17] - The company achieved a net income of approximately $330 million for the year, with $40.6 million in net income for Q4 [13][16] Business Line Data and Key Metrics Changes - The refinance business tripled in 2024 compared to 2023, despite a challenging interest rate environment [12][38] - The purchase market was dominated by UWM, with over $96 billion in production, marking the best purchase year in the company's history [12][13] Market Data and Key Metrics Changes - The broker channel's share of all direct fundings reached 27.4% in Q3 2024, a significant increase from previous years [23] - The company retained its position as the largest mortgage company in the US for the third consecutive year and the largest purchase lender for the fourth consecutive year [9] Company Strategy and Development Direction - UWM is focused on investing in cutting-edge technology, including AI, to enhance operational efficiency and prepare for market changes [10][22] - The company aims to maintain its competitive advantage by providing world-class service and leveraging technology to support the broker channel [10][22] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future, highlighting the potential for significant market opportunities as interest rates shift [11][20] - The company is well-prepared for various market scenarios, including potential interest rate drops, which could lead to increased refinancing activity [11][38] Other Important Information - UWM maintained strong liquidity and capital ratios, with approximately $2.1 billion in total equity and over $500 million in cash at year-end [20] - The company is positioned to handle more than $100 billion in additional origination volume without increasing fixed expenses [19] Q&A Session Summary Question: Inquiry about operating expenses - Management clarified that the higher operating expenses were due to one-time investments aimed at business growth, not ongoing costs [31][32] Question: Discussion on refinancing initiatives - Management noted that they tripled their refinance share in 2024 and are prepared for further growth in this area [36][38] Question: Measurement of success for broker incentives - Management explained that success is measured through broker retention and the percentage of business they conduct with UWM [41][46] Question: Volume and margin guidance for Q1 - Management provided guidance of $28 to $35 billion for Q1, emphasizing that the first quarter is typically the lowest production quarter [28][50] Question: Expectations for purchase mix in 2025 - Management indicated that the purchase mix would depend on interest rates, with a focus on achieving significant purchase volume [57][60] Question: Approach to managing servicing levels - Management stated that they closely monitor servicing assets and are prepared to retain or sell based on market conditions [66][68] Question: Outlook on MSR sales and debt management - Management confirmed that decisions regarding MSR sales are tied to overall business strategy and market conditions [73][75] Question: Regulatory outlook and its impact on the industry - Management expressed optimism about the new administration's impact on the mortgage industry, anticipating positive changes [111][115] Question: Strategy for increasing float and potential acquisitions - Management indicated that they are exploring various strategies to increase float and are open to acquisition opportunities [116][118]

Loan Origination and Production - For the year ended December 31, 2024, the company originated $139.4 billion in loans, an increase of $31.1 billion, or 28.8%, from $108.3 billion in 2023[224]. - For the year ended December 31, 2023, the company originated $108.3 billion in loans, a decrease of $19.0 billion, or 14.9%, from $127.3 billion in 2022[225]. - Loan production income rose to $1,528.8 million in 2024, up 52.8% from $1,000.5 million in 2023, driven by a loan origination volume increase of $31.1 billion, or 28.8%[2][3]. - The company has been the largest overall residential mortgage lender in the U.S. by closed loan volume for the last ten years, focusing exclusively on the wholesale channel[215]. - The weighted average loan-to-value ratio was 81.91% in 2024, slightly down from 82.89% in 2023[2]. - The average loan amount increased to $386, up from $368 in 2023, reflecting a shift in loan production dynamics[2]. Financial Performance - The company reported a net income of $329.4 million for the year ended December 31, 2024, compared to a net loss of $69.8 million in 2023, marking a $399.2 million improvement[224]. - Total revenue for the year ended December 31, 2024, was $2,163.7 million, an increase of 65.0% from $1,311.3 million in 2023[1]. - Net income attributable to UWM Holdings Corporation was $14.4 million for the year ended December 31, 2024, compared to a net loss of $13.2 million in 2023[1]. - Net income for the year ended December 31, 2024, was $329,375,000, a significant recovery from a net loss of $69,782,000 in 2023[373]. - The provision for income taxes for 2024 was $6.6 million, compared to a tax benefit of $6.5 million in 2023, reflecting an increase in pre-tax income[259]. Loan Servicing and Related Income - Loan servicing income decreased to $636.7 million in 2024, a decline of 22.2% from $818.7 million in 2023, primarily due to a reduction in the average servicing portfolio[4]. - The company retains the mortgage servicing rights (MSRs) associated with the majority of its production, with plans to opportunistically sell MSRs depending on market conditions[218]. - The company’s loan production income includes all components related to the origination and sale of mortgage loans, while loan servicing income consists of contractual fees earned for servicing the loans[221]. - The fair value of Mortgage Servicing Rights (MSRs) decreased by $295.0 million for the year ended December 31, 2024, compared to a decrease of $854.1 million for 2023, primarily due to cash flow realizations and market interest rate changes[249]. - The fair value of MSRs was evaluated using significant assumptions, including prepayment speeds and discount rates, which were deemed critical audit matters[351]. Expenses and Costs - The company’s operating expenses include salaries, commissions, direct loan production costs, and other administrative expenses[223]. - Other costs for the year ended December 31, 2024 were $1.2 billion, an increase of $290.4 million or 31.0% compared to $935.6 million in 2023, mainly due to higher salaries and direct loan production costs[257]. - Direct loan production costs increased by $86.0 million or 82.5% in 2024, primarily due to costs associated with new programs and increased loan production volume[257]. - The company reported a significant increase in salaries, commissions, and benefits, totaling $689.160 million in 2024, up from $530.231 million in 2023, a rise of 30%[366]. Cash Flow and Liquidity - Net cash used in operating activities was $6.2 billion for the year ended December 31, 2024, a significant decrease from $165.2 million in 2023[302]. - Net cash provided by investing activities increased to $2.7 billion in 2024 from $1.8 billion in 2023, driven by higher proceeds from sales of MSRs and excess servicing cash flows[304]. - Net cash provided by financing activities was $3.6 billion in 2024, compared to $2.2 billion used in financing activities in 2023, primarily due to net borrowings under warehouse lines of credit[306]. - The company anticipates sufficient liquidity to maintain operations and fund loan originations for the next twelve months[267]. Debt and Financing - The company issued $800 million in senior unsecured notes due February 1, 2030, accruing interest at 6.625% per annum[283]. - The company issued $700 million in senior unsecured notes due April 15, 2029, accruing interest at 5.500% per annum[279]. - The company issued $500 million in senior unsecured notes due June 15, 2027, accruing interest at 5.750% per annum[281]. - As of December 31, 2024, the company had $250 million outstanding under the Conventional MSR Facility[289]. - As of December 31, 2024, the company had $250 million outstanding under the Ginnie Mae MSR Facility[291]. Market and Operational Insights - The company’s unique model focuses on the wholesale channel, resulting in superior customer service and alignment with clients[219]. - The company utilizes forward agency or Ginnie Mae To Be Announced (TBA) securities as its primary hedge instrument to mitigate interest rate risk[336]. - The company incurred no losses due to nonperformance by any counterparties during the years ended December 31, 2024, 2023, or 2022[341]. - The company’s warehouse lenders conduct daily evaluations of the collateral based on the fair value of mortgage loans[272]. Stock and Shareholder Information - The company declared a dividend of $0.10 per share of Class A common stock, totaling $15.8 million, in the fourth quarter of 2024[309]. - The total balance of Class A common stock shares increased to 157,940,987 by December 31, 2024, from 93,654,269 in 2023, marking a growth of approximately 68%[369]. - The company paid dividends of $39,734,000 to Class A common stockholders in 2024, compared to $37,244,000 in 2023[373]. Miscellaneous - The company maintained effective internal control over financial reporting as of December 31, 2024, according to the audit opinion[356]. - The company has 10,624,987 public warrants and 5,250,000 private warrants outstanding, each entitling the holder to purchase one share of Class A common stock at an exercise price of $11.50[407].

UWM Holdings Corporation (NYSE:UWMC) Q4 2024 Results Conference Call February 26, 2025 11:00 AM ET Company Participants Blake Kolo - Chief Business Officer & Head, Investor Relations Mathew Ishbia - Chairman & Chief Executive Officer Andrew Hubacker - Chief Financial Officer Conference Call Participants Terry Ma - Barclays Eric Hagen - BTIG Derek Sommers - Jefferies Bose George - KBW Brad Capuzzi - Piper Sandler Doug Harter - UBS Jeff Adelson - Morgan Stanley Mikhail Goberman - Citizens Regina Good morning. ...